Kenya Government to Launch M-Akiba Bond March

Last week, we highlighted key projects the government needs to undertake in a bid to spur the ICT sector in 2016. Among these were the laptop project, scale up E-government, revive state broadcaster KCB and launch M-Akiba. The M-Akiba is a project formulated by the government through Treasury Mobile Direct Programme aimed at allowing investors to invest in government securities through mobile devices. The program has delayed several times owing to volatility in the interest markets.

Through Treasury Mobile Direct, the government was to launch the M-Akiba bond to allow investors to purchase government securities for Kshs. 3,000 compared to the current Kshs. 50,000 threshold through their phones. Investors could invest as much as Sh140,000 for the income tax free bond. To invest potential investors needed to have a valid ID, dial *889# and follow the prompts and then purchase their bonds.

According to Business Daily, the government plans to launch the program towards the end of Q1, which is likely in March. The government is still creating awareness on the program aimed at attracting more investors. Investors will receive interest payments for the bonds via mobile money services slated to take place semi-annually.